C3.ai (AI) Valuation Check After Prolonged Share Price Slump and Recent Short-Term Rebound

C3.ai (AI) has been grinding through a rough stretch, with the stock down sharply this year even as AI chatter dominates markets. That disconnect is exactly what has many investors rechecking the story.

See our latest analysis for C3.ai.

Despite a recent 1 week share price return of 6.0 percent and a 1 day bounce that lifted the stock to 15.01 dollars, the 1 year total shareholder return of negative 60.07 percent and 5 year total shareholder return of negative 83.77 percent show that momentum has been fading rather than building.

If this kind of volatility has you comparing options, it might be a good time to explore other high growth tech and AI opportunities using high growth tech and AI stocks.

With growth slowing, losses persisting, and the share price already sitting near analyst targets, investors now face a key question: Is C3.ai an overlooked bargain in enterprise AI, or is the market already pricing in any future upside?

Most Popular Narrative: 2.3% Overvalued

With C3.ai last closing at 15.01 dollars against a most popular fair value of about 14.67 dollars, the spread is slim but telling for valuation focused investors.

The analysts have a consensus price target of $21.75 for C3.ai based on their expectations of its future earnings growth, profit margins and other risk factors. However, there is a degree of disagreement amongst analysts, with the most bullish reporting a price target of $30.0, and the most bearish reporting a price target of just $13.0.

Read the complete narrative.

Want to see what justifies such a wide price target range? The narrative leans on specific revenue ramps, margin shifts, and a punchy future earnings multiple. Curious which numbers have to fall perfectly into place for that outlook to work?

Result: Fair Value of $14.67 (OVERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, that upbeat scenario still hinges on reversing falling revenue and resolving sales execution issues. Any stumble there could quickly weaken the bullish thesis.

Find out about the key risks to this C3.ai narrative.

Build Your Own C3.ai Narrative

If this perspective does not quite fit how you see C3.ai, you can review the numbers yourself and build a fresh take in minutes, Do it your way.

A great starting point for your C3.ai research is our analysis highlighting 3 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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